Property taxes in Maine generate over $2 billion a year to fund local government services. Of the three major taxes – income, sales and property – used to fund Maine state and local governments, property taxes comprise the larger slice of the revenue pie. Property taxes generally account for 44% of the revenues in Maine generated by the three major taxes. The income taxes (corporate and personal) generate 30%, and the sales tax generates 26% of the total.

Property taxes have been with us since colonial times when a person’s wealth could be measured in the amount of property a person owned. Although it is our oldest form of taxation in Maine, the property tax still remains widely misunderstood. As the fundamental structure of our economic system has evolved from an agricultural economy to a manufacturing economy to a services-based economy, the patterns of ownership have changed and the property tax has become quite regressive because it is no longer necessarily based on a person’s wealth or ability to pay.

Properties are appraised so that those of us who want the advantages of having schools, fire, and police protection as well as other public benefits can absorb our fair share of the cost, in proportion to the amount of money our individual properties are worth. The property tax is part of a well-balanced revenue system. It is a more stable source of money than sales and income taxes because it does not fluctuate when communities have recessions. When the community spends your tax dollars on better schools, parks, and so on, your property values rise. Some of the windfall benefits you receive are recaptured by the property tax.

Both real (land and buildings) and personal property (tangible goods) are subject to taxation, unless they are exempted by law or subject to another form of taxation, such as the excise tax for motor vehicles and boats. Since home furnishings are largely exempt from personal property taxes, the property tax bill for most Maine homeowners is based on the value of the land, the house, and the outbuildings.

Local assessors are required by law to "ascertain as nearly as may be the nature, amount and value as of the first day of April of the real estate and personal property subject to be taxed . . ." This means that if on the 1st day of April you own property that is subject to taxation, then you are liable to pay those taxes to your municipality.

Property taxes are levied according to a mil rate. The mil rate is the dollars / cents per $1,000 of value that you will pay in property taxes. For example, if you own a home valued at $100,000 and the tax rate is 20 mils, then your tax bill will be $2,000 (or $20 x 100). Read More

Your tax bill is determined by multiplying your assessed value times the tax rate. The assessor’s office determines your assessed value and the City Council sets the tax rate each May with the passage of the city budget. Since assessed values can change over time in response to market conditions and property improvements, the revaluation process updates property values to ensure those properties with greater value pay a larger percentage of the overall property tax obligation.

Maine communities provide a vast array of services, including police and fire protection, winter and summer road maintenance, code enforcement, planning, economic and community development, issuance of licenses, recreation, parking, solid waste collection and disposal, water and sewer services, emergency medical services, health and human services, and sometimes more depending on where you live. Property taxes on average fund about 50% of the cost of local governments; the remainder comes mostly in the form of state assistance.

When market value changes, naturally so does assessed value. For instance, if you were to add a garage to your home, the assessed value might increase. However, if your property is in poor repair, the assessed value might decrease.

Based upon the result of the annual sales study conducted by the State of Maine Property Tax Division, the city has declared an assessment ratio of 84% for the current tax year (FY20).

Homestead and Veterans Exemptions, by state statute, are adjusted each year by the local assessment ratio. Therefore the allowable Veteran’s exemption is $5,040(6000 x 84%). The Homestead exemption is $16,800 (20,000 x 84%).

Pursuant to state statute, tax appeals must be filed in writing with the tax assessor within 185 days of the commitment of the taxes. The filing deadline for the city's current FY2020 tax year is 185 days from the date of commitment which was July 23, 2019. The appeal deadline, therefore, is January 24th, 2020. Tax appeals must be based upon a claim of over valuation of the property, not upon the amount of the tax bill. A taxpayer may only appeal the current assessed value stated on the tax bill.

To submit an address change or correction you will need to present to the assessor’s office a signed, written statement of the changes needed or, return the tear off portion of your tax bill with the noted changes. You may also email the Assessor's office with your request. The city cannot accept verbal requests for address changes.

Portland Downtown is a 501(c)(4) nonprofit organization created to provide day-to-day asset management and marketing services to the designated Downtown Portland area. Its mission is to maintain a clean and safe downtown while building and promoting a vibrant business, residential, and tourism destination.

The organization is funded through a special assessment or supplemental tax on property within the district’s boundaries. The assessed valuations used for the Portland Downtown billing are the same as those for property tax valuation purposes and the rate is $1.09 per thousand for FY2020.

The Portland Downtown office is located at 549 Congress Street, Portland Maine 04101. Call 207-772-6828 or visit them online. To view the boundary map of the Portland Downtown District, click here.